Education
About Us
Working with TipRanks
Follow Us
Methanex Corp. (TSE:MX)
TSX:MX
Top Page
Methanex
(TSX:MX)
68Neutral
Positive Factors
Market Demand
Longer-term, new applications, particularly in the marine sector, are likely to support structurally higher methanol prices over the next few cycles.
Market Growth
Global methanol demand is expected to grow at approximately 4% CAGR through 2030, with marine demand contributing significantly to this growth.
Valuation Potential
Methanex currently trades at 38% of replacement value, suggesting a potential double in share price, at least, by the next peak.
Negative Factors
Operational Challenges
Methanex's methanol plant in Louisiana was negatively impacted by an unplanned outage.
Production Volume
The majority of the negative impact to operating performance is expected on lower produced methanol volumes.
Volume Outlook
An unplanned G3 outage likely lowers Methanex's volume outlook.
Methanex (MX) vs. S&P 500 (SPY)
Market Cap
$3.05B
Dividend Yield2.29%
Average Volume (3M)259.64K
Price to Earnings (P/E)9.7
Beta (1Y)1.45
Revenue Growth5.98%
EPS Growth39.35%
CountryCA
Employees1,415
SectorBasic Materials
Sector Strength63
IndustryChemicals
Share Statistics
EPS (TTM)1.80
Shares Outstanding67,395,210
10 Day Avg. Volume202,043
30 Day Avg. Volume259,641
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)0.97
Price to Sales (P/S)0.00
P/FCF Ratio2.75
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit5.11
Enterprise Value/Ebitda1.45
Forecast
1Y Price Target
$63.72Price Target Upside40.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Methanex Business Overview & Revenue Model
Company DescriptionMethanex Corporation produces and supplies methanol in North America, the Asia Pacific, Europe, and South America. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyMethanex makes money primarily through the production and sale of methanol. The company's revenue model is centered around its global network of production facilities and its strategic partnerships that ensure a consistent supply of methanol to meet market demand. Methanex's key revenue streams include long-term supply agreements with industrial customers, spot market sales, and distribution contracts. The company's earnings are significantly influenced by global methanol prices, production volumes, and operational efficiencies. Methanex also benefits from strategic joint ventures and logistical capabilities, allowing it to optimize supply chain operations and reduce costs, ultimately enhancing its profitability.
Methanex Financial Statement Overview
Summary
Methanex presents a solid financial profile with strong operational margins and cash flow management. Despite a slight revenue decline, the company effectively manages costs and leverage, maintaining a healthy balance sheet. Continued focus on revenue enhancement and shareholder equity strengthening could improve overall financial health.Income Statement
The company shows a consistent gross profit margin with a TTM of 22.88%, indicating stable cost control. However, the net profit margin is relatively lower at 6.02%, suggesting room for improvement in cost efficiencies or pricing strategies. Revenue has slightly declined by 0.51% from the previous year, indicating a potential challenge in market demand or competitive pressures. EBIT and EBITDA margins are strong at 13.39% and 24.51% respectively, highlighting solid operational performance.70
Positive
Balance Sheet
The company maintains a balanced debt-to-equity ratio of 1.44, suggesting moderate leverage. The return on equity (ROE) stands at 9.92%, reflecting decent profitability relative to shareholder equity. The equity ratio is at 33.74%, indicating a stable financial structure but with room for strengthening equity to asset ratio.68
Positive
Cash Flow
The free cash flow growth is impressive at 41.24%, indicating effective cash management and operational efficiency. The operating cash flow to net income ratio is 4.35, suggesting strong cash generation capability relative to accounting profits. The free cash flow to net income ratio is 3.57, underscoring robust cash flow conversion which supports potential reinvestments and debt servicing.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.70B | 3.72B | 3.72B | 4.31B | 4.41B | 2.65B | Gross Profit |
| 846.86M | 710.42M | 655.40M | 865.09M | 1.08B | 294.84M | EBIT |
| 495.67M | 361.96M | 263.57M | 610.61M | 711.97M | -32.43M | EBITDA |
| 906.86M | 798.42M | 794.81M | 1.09B | 1.17B | 334.53M | Net Income Common Stockholders |
| 222.66M | 163.99M | 174.14M | 353.83M | 482.36M | -125.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 407.07M | 891.91M | 458.01M | 857.75M | 932.07M | 833.84M | Total Assets |
| 6.38B | 6.60B | 6.43B | 6.63B | 6.09B | 5.70B | Total Debt |
| 3.02B | 3.23B | 3.01B | 3.02B | 2.88B | 3.09B | Net Debt |
| 2.61B | 2.34B | 2.56B | 2.16B | 1.94B | 2.25B | Total Liabilities |
| 4.16B | 4.22B | 4.25B | 4.20B | 4.13B | 4.25B | Stockholders Equity |
| 1.97B | 2.09B | 1.93B | 2.11B | 1.68B | 1.15B |
| Cash Flow | Free Cash Flow | ||||
| 795.25M | 563.11M | 211.82M | 400.38M | 748.49M | 119.27M | Operating Cash Flow |
| 969.43M | 737.18M | 660.27M | 977.76M | 993.93M | 461.08M | Investing Cash Flow |
| -82.73M | -99.74M | -508.58M | -553.14M | -253.05M | -278.06M | Financing Cash Flow |
| -206.33M | -203.55M | -551.42M | -508.53M | -643.09M | 234.06M |
Methanex Technical Analysis
Neutral
45.21
Price Trends
47.62
Negative
58.49
Negative
58.72
Negative
Market Momentum
-0.43
Negative
52.65
Neutral
73.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MX, the sentiment is Neutral. The current price of 45.21 is above the 20-day moving average (MA) of 41.89, below the 50-day MA of 47.62, and below the 200-day MA of 58.72, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 73.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MX.
Methanex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Performance Comparison
TSE:MX
Methanex
45.21
-25.71
-36.25%
TSE:CHE.UN
Chemtrade Logistics
9.72
1.55
18.97%
Methanex Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 4.65%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
Methanex's Q1 2025 performance showed strong financial results and operational recoveries, particularly in Chile and Geismar. However, challenges remain with production issues in Egypt and Geismar, decreasing methanol prices, and gas supply issues in New Zealand. The outlook includes a focus on completing the OCI acquisition and managing lower projected Q2 EBITDA.Q1-2025 Updates
Positive Updates
Strong Financial Performance in Q1 2025
Methanex reported an average realized price of $404 per ton and produced sales of approximately 1.7 million tons, generating adjusted EBITDA of $248 million and adjusted net income of $1.30 per share.
Successful Restart of Geismar 3 (G3) Plant
The G3 plant successfully restarted and has begun producing methanol, following a planned turnaround at G2 and addressing an unplanned outage at G3.
Positive Developments in Chilean Operations
Both plants in Chile have been operating at full rates, with increased production due to better reliability and removal of a technical constraint.
Stable Financial Position and Acquisition Progress
Methanex ended Q1 with $1.031 billion of cash and continued access to a $500 million undrawn revolving credit facility. The company is progressing with the OCI acquisition, expected to close in Q2 2025.
Negative Updates
Production Challenges in Egypt and Geismar
In Egypt, production was 20,000 tons lower due to gas curtailments. In Geismar, production was affected by a planned turnaround and an unplanned outage.
Decreased Methanol Pricing and Future Outlook
Methanol spot pricing in China decreased by approximately $20 per metric ton from Q1 levels. The second quarter European quarterly price decreased by €75 from the first quarter.
Gas Supply Issues in New Zealand
Methanex produced less at full capacity of one plant and faced potential power sector demands on gas supplies.
Company Guidance
In the Methanex Corporation's first quarter 2025 results conference call, the company provided guidance indicating strong operational and financial performance. Methanex achieved an average realized price of $404 per ton and produced sales of approximately 1.7 million tons, leading to an adjusted EBITDA of $248 million and adjusted net income of $1.30 per share. This performance marked an improvement from the previous quarter, driven by higher methanol prices and increased sales volumes. The company also highlighted several operational challenges, including lower production from Geismar, Trinidad, and Egypt due to various outages and gas curtailments, but noted successful restarts and improved reliability in some facilities. Methanex ended the quarter with $1.031 billion in cash and maintained access to a $500 million undrawn revolving credit facility. Looking forward, the company posted a second quarter European price of €625 per ton, reflecting a decrease from the first quarter, and forecasted a lower average realized price between $360 and $370 per ton for April and May due to lower sales and pricing adjustments. Methanex remains focused on safely operating its business, closing the OCI acquisition, achieving identified synergies, and directing free cash flow towards reducing leverage, while cautiously monitoring the impact of global tariffs and economic conditions on methanol demand.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.